Gold continues to rise ... Now at $1,343
What is the rapid rise in the price of Gold telling us ? Inflation or Imminent StockmMarket Crash ?
Chart: http://www.kitco.com/charts/popup/au24hr3day.html
John Husselbee, who runs "multi-manager" funds for Liontrust, and has been a fund manager for 30 years, said four key indicators were worth keeping an eye on.
“What set the great crashes apart from my perspective were changes – before the market dropped – in what I deem the key indicators of fear: the 'Vix' index, widely known as the fear index; the gold price; the US dollar; and the yield on US government debt,” he said.
“In 1987 and 2008 the first three rose, while yields on US government bonds shrank [meaning that their prices rose] as investors fled to safety. Stock markets are driven by fear and greed, and each of these early warning indicators was a reflection of the fear at the time."
I don't know much about how gold's price would affect things, why would it possibly indicate a crash?
John Husselbee, who runs "multi-manager" funds for Liontrust, and has been a fund manager for 30 years, said four key indicators were worth keeping an eye on.
“What set the great crashes apart from my perspective were changes – before the market dropped – in what I deem the key indicators of fear: the 'Vix' index, widely known as the fear index; the gold price; the US dollar; and the yield on US government debt,” he said.
“In 1987 and 2008 the first three rose, while yields on US government bonds shrank [meaning that their prices rose] as investors fled to safety. Stock markets are driven by fear and greed, and each of these early warning indicators was a reflection of the fear at the time."
Keep an eye on those 4 .... Vix, Gold, USD, Yields on USGov Debt
Gold is a dollar hedge
Same cycle the past few years, but this might go boom!
Great work very interesting post Thank You for sharing
It's funny, but for the past 9 months I've been so focused on the price for cryptocurrencies, I'd completely lost track of the price of precious metals.
Me too.... it’s good to just buy some and forget about it.... that way you don’t sell when it drops.